UAW points blame for bailout failure back at Senate Republicans
Earlier this morning, United Auto Workers president Ron Gettelfinger held a press conference in which he pointed the finger of blame back at Senate Republicans, particularly ones from Southern states in which many foreign-owned auto assembly plants are located, for the failed attempt last night to pass the Auto Rescue/Bailout Bill in the Senate. As we mentioned earlier, negotiations fell apart over the issue of wage parity, or what Senator Bob Corkey (R-Tenn.) called "competitive wages". Gettelfinger claims the UAW was willing to make its wages and benefits competitive with those earned by non-union workers at transplant factories, but felt it must be done over time through the attrition of older, higher-paid workers and the hiring of new workers at a lower wage with less benefits. Despite this concession by the UAW, Senate Republicans demanded that wages and benefits be made competitive by what it calls an "arbitrary date", likely March 31, 2009.
It seems like a minor issue to stall such an important piece of legislation, which may lend credence to Gettelfinger's suspicion that the UAW was "set up" as a scapegoat by Senate Republicans who have it out for organized labor.
[Source: The Detroit Free Press, MSNBC, Photo by Bill Pugliano/Getty]
UAW Statement
"The UAW is deeply disappointed that Senate Republicans have blocked the bipartisan legislation that was agreed to by President Bush and congressional Democrats.
"In an effort to work out a compromise, the UAW was prepared to agree that any restructuring plan should ensure that the wages and benefits of workers at the domestic automakers should be competitive with those paid by the foreign transplants. But we also recognized that this would take time to work out and implement, using attrition programs to allow the companies to hire new workers at the lower wage and benefit rates. Unfortunately, Senate Republicans insisted that this had to be accomplished by an arbitrary deadline. This arbitrary requirement was not imposed on any other stakeholder groups. Thus, the UAW believed this was a blatant attempt to make workers shoulder the lion's share of the costs of any restructuring plan.
"The UAW has recognized from the beginning that all stakeholders will be required to make sacrifices to ensure the viability of the domestic auto companies. We were prepared to do our part. But we could not accept the GOP demands to treat workers differently from all other stakeholders, and to subject them to different requirements than other groups.
"Now that the legislation has been blocked by Senate Republicans, the UAW calls on Secretary Paulson to use his authority to provide TARP funds to provide emergency assistance to the domestic auto companies. The ball is squarely in his court. He has the power to prevent the imminent collapse of the companies, and the disastrous consequences that will follow for millions of retirees and workers and for the economy of our entire nation."
Reader Comments (Page 1 of 7)
halogenrep 12:36PM (12/12/2008)
Why would foreign automakers want American Cars to be competitive as a result from worker benefits and wage cut?
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magilson 12:40PM (12/12/2008)
Shhh. Let them have their unfounded theories.
ronnie schreiber 1:26PM (12/12/2008)
Because it gives those foreign entities the power to set standards for wages and benefits. What's to stop Toyota, Mercedes, Honda, Nissan and Hyundai from cutting their wages? Will big Dick, Shelby then insist that the UAW further reduce its wages?
This is an insane abdication of US sovereignty. It's one thing to let the market decide if a company is paying unsustainable wages. It's another for the US Senate to compel US workers to work for wages set by foreign competitors to US industries.
Ligor 1:41PM (12/12/2008)
well, all automakers are tied to suppliers and when one automaker goes donw it brings the supplier down and that can become a chain event untill the whole auto industry needs to files for bankrupcy
but, this is what you call digging your own grave.
the UAW might as well put RIP on Chrystler and figure a way on how they'll get the $$ for the pension funding from them.
Once GM files that that $$ is also gone
...
Josh 2:31PM (12/12/2008)
The UAW is ass-backwards and always has been - i really think CH11 is going to solve a lot of this mischief they have been pulling forever. It is just incredible that these morons who don't work nearly hard enough to build a car get paid more than hard working people. Socialist BS.
Tim 12:38PM (12/12/2008)
Last Time I checked (20 Min ago) it was not smart to call out the people you are asking for money. Ron save the hardball for after they save your job not now.
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geo.stewart 12:46PM (12/12/2008)
you know how you joke about people who think they are god's gift/ all that and a bag of chips/...
Let me introduce you to the union mentality. truth is stranger than fiction. twighlight zone come to fruition. some people are just so deluded about their own self-worth.
senspeed 12:39PM (12/12/2008)
UAW doesn't know they're planning their on demise.
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JC 3:45PM (12/12/2008)
They're so arrogant and greedy(UAW).
BrianW 11:30PM (12/12/2008)
Not just the Unions demise. Once the Unions fail and all these other companies have problems, are you all willing to take a pay cut to help your company? It's easy to criticize others, but you will get your chance to answer that soon enough.
Torrent 12:39PM (12/12/2008)
Well I think they officially just f*cked up.
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Louis 12:40PM (12/12/2008)
"but felt it must be done over time through the attrition of older, higher-paid workers and the hiring of new workers at a lower wage with less benefits."
What an idiot...
Mr. Gettelfinger, time is a luxury item which you don't have right now. How hard is that for you to understand.
Just die, UAW.
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Ford Wannup 2:35PM (12/12/2008)
absolutely. The bondholders, shareowners, management, all had to agree to a timeline. Heck, taxpayers had to agree to a timeline (ie. give them cash asap, like this month). UAW wants to wait until 2011. Why didn't they say so before? We could have just wait for this debate in 2011.
big j 9:38PM (12/12/2008)
2011? Didn't GM/Chrysler say they needed the funds by the end of the month?
WTF? They needed money they got it, all they had to do was make a few concessions, considering the urgency of the situation I really don't think the Republican demands are out of line.
If the economy bottoms out b/c of this, someone should go rip his mustache off.
BigMcLargeHuge 12:42PM (12/12/2008)
Of course the Union doesn't want a dissolution as a result of automaker Ch11 filings.
This was their last opportunity to stay overpaid indefinitely. They had to fight it.
They lost. Such is life.
I almost kinda feel bad for them, but busting up the UAW is a necessary evil.
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geo.stewart 12:41PM (12/12/2008)
you may consider it a minor point, but if I'm listening to analysts, management, and pundits all claiming that union costs at $55/hr are $10 higher than 'transplants', IGNORING the legacy costs of another $15/hr; then I would see that as a major sticking point to viability and that if if doesnt come into play until 2011, then the Big 2.5 will be coming back for more continuously until then.
I am more for this support of the industry than I ever was for the financial sector and the freebie handouts there but this is a legitimate concern.
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Brent 12:41PM (12/12/2008)
I am glad the GOP is working against the stupid bailout. I point the failure of the Big 3 at the UAW, take that Ron!
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Throwback 12:43PM (12/12/2008)
While no fan of the UAW he does have a point. Why pick a specific date to have wages made "equal". What exactly does competitive wages mean anyway, and who decides what is a competitive wage? It looks like it is up to the Prez to ride to the rescue. Ironic since the UAW has never supported Bush.
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chrisdavis 1:13PM (12/12/2008)
Who decides? The market decides just as it does for non-UAW plants.
Ford Wannup 2:41PM (12/12/2008)
only fair, no? They want the cash now, taxpayers say what are you doing to improve your profitability? What if come 2011 they renege and strike the companies?